Maybe I'm being really dense, but I can't figure out how to get books to update between my Touch and iPad. I mostly read on my Touch and if I do check the Kobo app on my iPad it's never even updated to the current book I'm reading. I'd like to get the books to be synced so that if I don't happen to have my Touch with me and have my iPad I could pick up where I left off reading. Am I doing something wrong?

OK--you can purchase books from kobo in two flavours, plain old ePUB (with and without drm) and kepub, their proprietary format for ePUB. Kepub books go into your Kobo library and download onto your devices when you sync. The others have to be manually added to the devices. What file format are you talking about?

Does the app sync the position in the book across devices?
The application does include this type of functionality, internally referred to as "cloud bookmarking".
If you are actually reading through a book, then at that point it is not instantly going to send the position in the book, however, if you suspend or quit *the app (press the home button on the device), or the device goes to sleep (auto-lock), or you manually exit the book, then we will attempt to send your position in the book to the server.
If you don't have any network connectivity at that point then we obviously cannot send the information up, and we don't cache it to send up later.*

Please note that this sync will ONLY work for books purchased from Kobo and that are part of your Kobo library. Books that have been "side-loaded" (added using iTunes, Dropbox, Safari, or any other method that allows you add a book to the Kobo app) will NOT sync their bookmarks between devices.